I was offered it, and I'm from WA. It seems to be more of a forgivable loan than a grant. Based on what I understand, every year you get a 16k loan that goes towards your tuition (for 4 years). Then, for every year you work in an underserved area in your home state, a 16k chunk is forgiven.
If you don't return to your home state and work in an underserved area, then you'll have to pay back the loan.
I didn't hear anything about a 2 year program. Eyenphx, where did you hear about this?